SOURCE: Clairvest Group Inc.

Clairvest Group Inc.

February 10, 2015 17:45 ET

Clairvest Reports Fiscal 2015 Third Quarter Results

TORONTO, ON--(Marketwired - February 10, 2015) - Clairvest Group Inc. (TSX: CVG) today reported results for the quarter and nine months ended December 31, 2014. (All figures are in Canadian dollars unless otherwise stated)

Highlights

  • December 31, 2014 book value was $428.7 million or $28.33 per share versus $431.6 million or $28.52 per share at September 30, 2014
  • Net loss for the quarter ended December 31, 2014 was $2.9 million or $0.19 per share
  • Net income for the nine months ended December 31, 2014 was $33.0 million or $2.18 per share
  • At December 31, 2014, cash or near cash of $211.4 million, presented on a Non-IFRS basis, represented 49.3% of the December 31, 2014 book value, or $13.97 per share
  • Subject to the approval of the Toronto Stock Exchange, Clairvest's Board of Directors approved a new normal course issuer bid

Clairvest's book value was $428.7 million or $28.33 per share at December 31, 2014, compared with $431.6 million or $28.52 per share at September 30, 2014. The decrease in book value per share for the quarter was attributable to net loss for the quarter of $2.9 million, or $0.19 per share. For the nine months ended September 30, 2014, net income was $33.0 million or $2.18 per share.

"Together with our partners, we continue to build value in our investee companies," said Jeff Parr, Co-CEO of Clairvest. "Our team is also identifying unique investment opportunities to continue to grow our portfolio."

Subject to the approval of the Toronto Stock Exchange, Clairvest's Board of Directors has approved a new normal course issuer bid to purchase up to 756,705 common shares on the Toronto Stock Exchange during the 12-month period commencing March 6, 2015.

The following tables reconcile the financial results reported in accordance with IFRS to Non-IFRS financial results. Non-IFRS financial information is provided to aid investors in better understanding the company's performance.

 
Summary of Financial Results & Financial Position - Unaudited
 
Financial Results  Quarters ended  Nine months ended
   December 31  December 31
   2014  2013  2014  2013
($000's, except per share amounts)  $  $  $  $
Net realized gains on corporate investments  -  -  31,152  -
Net changes in unrealized gains (losses) on corporate investments  (1,252)  11,326  1,814  27,954
Net investment gains (losses) (non-IFRS)  (1,252)  11,326  32,966  27,954
IFRS adjustments (1)  2,762  2,248  1,871  8,154
Net investment gains (IFRS)  1,510  13,574  34,837  36,108
         
Net carried interest income (non-IFRS)  328  3,018  11,302  9,326
IFRS adjustments (1)  328  3,018  11,302  9,326
Net carried interest income (IFRS)  656  6,036  22,604  18,652
         
Other income from treasury funds, investee companies and the CEP Funds (non-IFRS)  
5,255
 
5,398
 
17,242
 
19,665
IFRS adjustments (1)  (3,091)  (2,000)  (2,880)  (6,846)
Other income from treasury funds, investee companies and the CEP Funds (IFRS)  
2,164
 
3,398
 
14,362
 
12,819
         
Total expenses, excluding income taxes (non-IFRS)  7,030  4,380  25,210  15,009
IFRS adjustments (1)  (168)  4,125  13,299  11,957
Total expenses, excluding income taxes (IFRS)  6,862  8,505  38,509  26,966
         
Net income (loss) (Non-IFRS & IFRS)  (2,907)  13,255  32,996  36,583
         
Basic net income (loss) per share (non-IFRS and IFRS)  (0.19)  0.88  2.18  2.42
Fully diluted net income (loss) per share (non-IFRS and IFRS)  (0.19)  0.87  2.14  2.38
         
         
 
Financial Position  December  March
   2014  2014
($000's, except per share amounts)  $  $
     
Total assets (Non-IFRS)  477,170  439,961
IFRS adjustments (1)  42,067  35,501
Total assets (IFRS)  523,237  475,462
     
Total cash, cash equivalents and temporary investments (Non-IFRS)  211,399  115,786
IFRS adjustments (1)  (52,009)  (994)
Total cash, cash equivalents and temporary investments (IFRS)  159,390  114,792
     
Total corporate investments (Non-IFRS)  211,165  241,066
IFRS adjustments (1)  72,044  2,963
Total corporate investments (IFRS)  283,209  244,029
     
Total liabilities (Non-IFRS)  48,485  40,501
IFRS adjustments (1)  46,067  35,501
Total liabilities (IFRS)  94,552  76,002
     
Book value (Non-IFRS & IFRS) (2)  428,685  399,460
Book value per share (Non-IFRS & IFRS)  28.33  26.39
     
     

(1) IFRS adjustments: Under IFRS, the Company is required to fair value certain acquisition entities and wholly-owned holding entities instead of recording its share of the assets, liabilities, revenues and expenses of these entities. The Company is also required to recognize as revenue that portion of the carried interest from the CEP Funds which are allocated to the principals and employees of Clairvest through various limited partnerships. In addition, Clairvest is required to record a liability for any entitlements of limited partners of a partnership where the limited partners are not part of the consolidated group of the Company but where the partnership is required to be consolidated by the Company. Accordingly, that portion of the carried interest from the CEP Funds that is allocated to the limited partners of these partnerships ("MIP Partnerships") and the carried interest payable to MIP Partnerships by other partnerships which are consolidated by Clairvest (collectively, the "Management Entitlements") are recorded as an expense and a liability of the Company. The Non-IFRS measures are presented such that the assets, liabilities, revenues and expenses of these acquisition entities and wholly-owned holding entities are included as part of the Company's financial position and operating performance, and the Management Entitlements are on a net basis such that only that portion of the carried interest from the CEP Funds being allocated to Clairvest is reflected in income and as a receivable and the total fair value of corporate investments excludes that portion of partnership interests where Clairvest does not have beneficial ownership. The Company believes the Non-IFRS measures provide investors more insightful information regarding the Company's financial position and operating performance and such information is consistent with Management's evaluation of the business.

(2) Book value is a Non-IFRS measure calculated as the value of total assets less the value of total liabilities. The term book value does not have any standardized meaning according to IFRS and therefore may not be comparable to similar measures presented by other companies. There is no comparable IFRS measure presented in Clairvest's consolidated financial statements and thus no applicable quantitative reconciliation for such non-IFRS financial measure. The Company has calculated book value consistently for many years and believes that book value can provide information useful to its shareholders in understanding its performance, and may assist in the evaluation of its business relative to that of its peers.

Clairvest's third quarter fiscal 2015 financial statements and MD&A are available on the SEDAR website at www.sedar.com and on the Clairvest website at www.clairvest.com.

About Clairvest

Clairvest Group Inc. is a private equity investor which invests its own capital, and that of third parties through the Clairvest Equity Partners ("CEP") limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.

Forward-looking Statements

This news release contains forward-looking statements with respect to Clairvest Group Inc., its subsidiaries, its CEP limited partnerships and their investments. These statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Clairvest, its subsidiaries, its CEP limited partnerships and their investments to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general and economic business conditions and regulatory risks. Clairvest is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

www.clairvest.com

Contact Information

  • Contact Information

    Maria Klyuev
    Director, Investor Relations and Marketing
    Clairvest Group Inc.
    Tel: (416) 925-9270
    Fax: (416) 925-5753
    mariak@clairvest.com